Dec 2015

osho67 · Dec 3, 2013

SPX option trades can be done in Dec 2015. Do people go this far and possibly what are the advantages. ?

cdcaveman · Dec 3, 2013

There's an interest rate implication more in leaps... But leverage mostly.. And yes people trade leaps

osho67 · Dec 4, 2013

Quote from cdcaveman:

There's an interest rate implication more in leaps... But leverage mostly.. And yes people trade leaps

I tried to put up an iron condor in that date and and for the margin requirement of about 500 , I was getting in premium about 7500. (SPX) trade. But I waited and waited but the trade never got filled. I had put the trade at mid price and I reduced the premium I was getting but trade never filled. How to fill this type of trade?

Thanks

JohnGreen · Dec 4, 2013

osho67, check out the volume and open interest on these options. I'll bet they are not widely traded which means that you are paying an even bigger than usual bid-ask spread on these.

cdcaveman · Dec 4, 2013

Quote from osho67:

I tried to put up an iron condor in that date and and for the margin requirement of about 500 , I was getting in premium about 7500. (SPX) trade. But I waited and waited but the trade never got filled. I had put the trade at mid price and I reduced the premium I was getting but trade never filled. How to fill this type of trade?

Thanks

I don't understand what expression you are trying to make about direction or volatility or interest rates.. But you realize you are expressing a view on all those by trading in this respect.. Volatility at all time lows, and your trading tail risk way way out.. This makes absolutely no sense to me.. no sense.. You are short interest rates , long the market , and short volatility all at once.. which is not what i would want to do going into the uncertainty of tapering.. Buy tails sell meat..

Took2Summit · Dec 4, 2013

Quote from cdcaveman:

I don't understand what expression you are trying to make about direction or volatility or interest rates.. But you realize you are expressing a view on all those by trading in this respect.. Volatility at all time lows, and your trading tail risk way way out.. This makes absolutely no sense to me.. no sense.. You are short interest rates , long the market , and short volatility all at once.. which is not what i would want to do going into the uncertainty of tapering.. Buy tails sell meat..

just curious, but if you have such a strong opinion on the trade, why not take the other side of it?

FXforex · Dec 4, 2013

Quote from cdcaveman:

I don't understand what expression you are trying to make about direction or volatility or interest rates.. But you realize you are expressing a view on all those by trading in this respect.. Volatility at all time lows, and your trading tail risk way way out.. This makes absolutely no sense to me.. no sense.. You are short interest rates , long the market , and short volatility all at once.. which is not what i would want to do going into the uncertainty of tapering.. Buy tails sell meat..

Quote from Took2Summit:

just curious, but if you have such a strong opinion on the trade, why not take the other side of it?

And what would the other side be? cdcaveman's post is very ambiguous.

cdcaveman · Dec 4, 2013

Quote from Took2Summit:

just curious, but if you have such a strong opinion on the trade, why not take the other side of it?

Because of the strike risk..I don't like the directional aspect of it...but I don't trade direction..I was just wanting to see what the guys view was ... And if he even had a thought about the other aspects of the trade were implying

cdcaveman · Dec 4, 2013

Quote from FXforex:

And what would the other side be? cdcaveman's post is very ambiguous.

The other side would be buying the IC from him...

What was ambiguous about it... You more and more of a view on interest rates as you go out further in time... But superseding that is the fact that your selling tail risk when its super cheap... Tails being the tail of the distribution of prices...it might work.. I just disagree that its a good trade.. And I'm allowed my opinion.. Just trying to help

newwurldmn · Dec 4, 2013

Quote from cdcaveman:

I don't understand what expression you are trying to make about direction or volatility or interest rates.. But you realize you are expressing a view on all those by trading in this respect.. Volatility at all time lows, and your trading tail risk way way out.. This makes absolutely no sense to me.. no sense.. You are short interest rates , long the market , and short volatility all at once.. which is not what i would want to do going into the uncertainty of tapering.. Buy tails sell meat..

What interest rate exposure is he taking?